Granite Construction Incorporated (GVA)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,007,570 | 3,509,140 | 3,301,260 | 3,010,050 | 3,562,460 |
| Total current assets | US$ in thousands | 1,716,660 | 1,643,450 | 1,347,300 | 1,827,400 | 1,455,250 |
| Total current liabilities | US$ in thousands | 1,031,960 | 1,029,880 | 797,594 | 1,069,320 | 943,256 |
| Working capital turnover | 5.85 | 5.72 | 6.01 | 3.97 | 6.96 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,007,570K ÷ ($1,716,660K – $1,031,960K)
= 5.85
Working capital turnover is a financial ratio that indicates how efficiently a company is utilizing its working capital to generate sales revenue. The trend analysis of Granite Construction Incorporated's working capital turnover from December 31, 2020, to December 31, 2024, shows fluctuations in the ratio.
- In December 31, 2020, the working capital turnover was reported at 6.96, indicating that the company generated $6.96 in revenue for every dollar of working capital invested.
- By December 31, 2021, the ratio decreased to 3.97, suggesting a decline in the efficiency of working capital utilization.
- In December 31, 2022, the ratio improved to 6.01, indicating better efficiency in generating sales revenue relative to working capital.
- However, in the following years, the ratio experienced some fluctuation, with the working capital turnover being 5.72 in December 31, 2023, and 5.85 in December 31, 2024.
Overall, the variations in the working capital turnover ratio over the years indicate changes in the company's efficiency in utilizing its working capital to support its revenue generation activities. It is essential for the company to monitor and manage its working capital effectively to ensure optimal utilization and operational performance.
Peer comparison
Dec 31, 2024